Dubai Islamic Bank, the first Islamic bank in the world and the largest Islamic bank in the UAE by total assets, yesterday announced its results for the year ended December 31st, 2014.
The report says that Net Profit for the year 2014 increased to Dh2.80 billion, up 63% compared to Dh1.70 billion for 2013. Gross Revenue increased to Dh6.3 billion, up 20% from Dh5.3 billion for the year 2013. Net operating revenue increased to Dh5.6 billion, up 32% from Dh4.2 billion for 2013 on account of growth in core business. Net operating profit before impairment stood at Dh3.52 billion, up 38% from Dh2.55 billion for 2013. Cost to income ratio improved from 39.9% in 2013 to 36.7% in 2014.
The report says that net revenue for the period ended 2014 amounted to Dh5,569 million, an increase of 31.5% compared with Dh4.2 billion in the same period of 2013. The increase in net revenue is mainly due to growth in core business coupled with savings achieved due to early settlement of high cost funding using bank's surplus liquidity. Despite intense competition and aggressive pricing seen in the market, the bank was able to improve the net funded income margin to 3.57% from 3.34%.
Speaking on the report's contents, Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler's Court of Dubai and Chairman of Dubai Islamic Bank, said, "2014 has been an exceptional year for the bank as evidenced by its strongest results in the bank's history with full year net profits reaching Dh 2.8 billion, an increase of 63% compared to 2013. The strong results have been achieved despite challenging conditions in the latter part of the 2014 around oil price and equity market volatility. Dubai is strongly positioned to withstand the current volatilities in the oil market given its diversified economy and infrastructure and DIB's 2014 performance echoes the bank's strategic alignment to support the growth agenda of the Emirate as well as its ambitions to become the global capital of Islamic economy.
DIB Managing Director, Abdulla Al Hamli, said, "The strong positive results for the year 2014 is a testament to the bank's capabilities in the current macro-economic and business landscape. Throughout the year, DIB have continued to progress in the industry through launching award winning products and services focused on benefitting our customers. The bank's successful and active participation in supporting this year's high level summit "The 10th World Islamic Economic Forum" in Dubai has further strengthened the institution's franchise in the Islamic world and DIB is now seen as one of the leading Islamic banks with a growing international footprint.
DIB Chief Executive Officer, Dr. Adnan Chilwan, said, "We started 2014 with a well-defined growth agenda marking the end of the consolidation phase running from 2009 to 2013. The successful execution of this consolidation phase resulted in a robust platform allowing the bank to seamlessly switch gears. Despite the relatively subdued market, the bank has witnessed a 63% hike in net profit and 32% jump in financing book compared to the same period last year, and all stemming from regular, core and normal banking activities.
"We are now looking beyond just the financials. Our deliberate and focused growth strategy and unconventional approach has led to an organisational transformation where every employee strongly believes that our potential is limitless. Customer centricity and relentless innovation forms the core of our strategic agenda providing us with an unparalleled edge in the industry, and setting the standard for others to follow.
"We have redefined service across the UAE market with the "SMART BANK" launch reinforcing our customer focus around selling satisfaction rather than products, and keeping banking simple. Global economic growth and development has seen a major shift over the last decade with Asia and in particular, Middle East, South Asia and Far East being amongst the major drivers. In most of these high growth nations, Islamic Finance is essentially being seen as a key component of economic progress and prosperity which in turn, has led to substantial enhancement of wealth across a growing population fuelling massive liquidity within the Islamic investor base.
"As the world's first Islamic bank, we at DIB shoulder the responsibility of developing this fast growing segment into a global norm for banking and finance. Moving towards 2015 as the franchise celebrates its 40th year anniversary, we look forward to continuing the momentum we have built so far leading the institution to new frontiers of excellence and supporting not only the development and growth of Islamic finance but also the aspirations of the nation and all our stakeholders.